New version of minimum wage hike bill welcomed

There is growing consensus among CNMI businessmen to support a new bill that would raise the local minimum wage rate to $4 per hour and cut most benefits provided to foreign workers.

Former Saipan Chamber of Commerce president Alex Sablan, who now heads the organization’s government relations committee, said House Bill 15-100 is the kind of minimum wage bill the Chamber had been pushing for in past years.

He said that most Chamber members, particularly his committee members, support the bill.

Introduced by House Floor Leader Florencio T. Deleon Guerrero, H.B. 15-100 seeks to increase the minimum wage rate to $4 per hour for most CNMI workers.

Workers in the garment industry would be exempted from the raise. They would continue to be covered by the current minimum wage rate of $3.05 per hour.

The bill also sets an overtime rate of $2 per hour for workers in exempt categories, which include persons employed by his son, daughter, spouse, or parents; executives, administrative or professionals; fishermen; seamen; taxi or bus drivers; golf caddies; students employed between semesters during holidays or vacations; farmers; or domestics.

Currently, workers in exempt categories are paid at least $300 per month. The overtime rate proposed by the bill would apply to work performed in excess of 72 hours per week.

H.B. 15-100 also seeks to cut benefits currently enjoyed by nonresident workers.

The bill would place on all guest workers the burden of purchasing his airline ticket from his country of origin to the Commonwealth. The employer would then be responsible only for the repatriation ticket.

The proposed legislation would also require all alien workers to pay all CNMI labor and immigration expenses, including expenses for criminal record and medical health certificate for new and renewal applications.

Furthermore, employers who provide employees with meals and lodging would be authorized to deduct money from the employees’ payroll checks.

The deductions, which would apply only to employees in regular categories, could be up to $5 per day or $150 per month for meals, and $250 per month for lodging.

As for employees in exempt categories, employers would be required to provide them three meals daily and lodging free of charge.

Health and dental insurance premiums would be split between employers and employees.

Workers in regular employment categories would be required to contribute 80 percent to the agreed amount of premiums, with the employer paying 20 percent.

For exempt categories, premium payments would be divided equally between the employer and employee.